By Ricardo Dias
Maputo (MOZTIMES) – Linhas Aéreas de Moçambique (LAM) has announced the suspension of its intercontinental flights to Lisbon and the regional routes to Harare and Lusaka as part of a company restructuring, following accumulated losses of USD 21 million.
LAM spokesperson Alfredo Cossa announced the decision on Tuesday during a press conference in Maputo.
The suspension of intercontinental and regional routes is due to the lack of financial viability of the operations. On the regional routes Maputo-Harare and Maputo-Lusaka alone, LAM recorded a loss of USD 307,000. That is in addition to the USD 21 million loss on the Lisbon route since it was reopened in November 2023
The airline is also assessing the viability of continuing flights on the Maputo-Cape Town route, based on financial feasibility, demand, and operational profitability.
The decision aims to restructure and improve the company’s revenue by focusing on the most profitable domestic routes. “The suspension of international routes reflects LAM’s commitment to implementing a new business dynamic to enhance profitability and management efficiency,” said Alfredo Cossa.
The restructuring comes amid ongoing financial difficulties for LAM, exacerbated by rising operational costs and declining demand on international routes.
The Mozambican government is preparing for the partial privatisation of LAM, with 91% of the company set to be sold to three other public companies – namely, Hidroeléctrica de Cahora Bassa (HCB), which operates the Cahora Bassa dam on the Zambezi river, Mozambique Railways (CFM) and the country’s largest insurance company, EMOSE – with the aim of ensuring the airline’s financial sustainability.
(RD)
